What is Ethereum (ETH)?
Ethereum (ETH), launched in 2015 by Vitalik Buterin and his team, was conceptualized to extend the capabilities of blockchain technology beyond Bitcoin’s scope. While Bitcoin was designed primarily as a digital currency, Ethereum introduced the concept of a blockchain platform for decentralized applications (dApps) and smart contracts. These smart contracts are self-executing contracts with the terms directly written into code, enabling more complex and programmable transactions. Ethereum’s creation marked a significant shift in the blockchain ecosystem, enabling developers to build a wide range of applications, from decentralized finance (DeFi) to non-fungible tokens (NFTs).
The platform’s native token, Ether, serves as a fuel for operating these applications. Ethereum’s significant contribution to the blockchain space includes the introduction of ERC-20 and ERC-721 token standards, which have become foundational for many digital assets and collectibles. As the second-largest cryptocurrency by market capitalization, Ethereum continues to play a pivotal role in the broader crypto ecosystem, driving innovation and adoption of blockchain technology.